Irwin Mitchell Launches Auto-Enrolment Survey

The employment and pensions group at leading law firm, Irwin Mitchell, has launched a survey which intends to reveal what action small and medium-sized organisations have taken in relation to implementing auto-enrolment laws (AE).

The survey, the latest in a series of ‘thought leadership reports’ by Irwin Mitchell’s Business Legal Services team, is expected to be published in May 2013.

AE was phased in from October 2012 and will eventually mean that every employer will need to contribute to the pension pot of their employees aged between 22 and state pension age.

Initially rolled out to the largest employers, there has been a timetable of application of AE to companies gradually reducing in size, so that those with 800 employees will be affected on 1 October 2013, down to 500 on 1 November 2013. Those employing below 500 down to 350 will be affected on 1 January 2014, whilst those with between 350 and 250 employees – the generally recognised maximum size of an SME – will be in scope from 1 February 2014.

From then onwards, there is a more detailed and gradual reduction to April 2015 for those employing below 250 down to 50. Those with less than 50 will see the new rules apply between February 2015 and March 2016.

Meanwhile, all those who have passed their implementation date still have to monitor and service their AE system.

Tom Flanagan, National head of Employment and Pensions at Irwin Mitchell, said: “Auto-enrolment legislation is eventually going to affect all businesses and will create continuing maintenance obligations. Not only will this latest report give a clear indication of what employers have done so far, it will also provide an opportunity to listen to businesses so that we can work closely with them in order to find a solution and help them deal with their issues in a cost effective manner.”

In the last 12 months, Irwin Mitchell has published reports on recession-based employment tactics and the impact of the removal of the default retirement age.

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